(Bloomberg) — Bank of England policy maker Jonathan Haskel said UK interest rates should stay at a 16-year high until there’s more firm evidence that inflationary pressures are subdued.
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The official, who finishes his term on the BOE’s Monetary Policy Committee at the end of August, said there’s been “considerable encouraging signs” on reducing inflation to the 2% target but that “enormous shocks” in the labor market in the past few years mean price pressures are likely to tick higher again.
“The continued tight and impaired labor market, means that inflation will remain above target for quite some time,” Haskel said in the text of a speech released by the BOE on Monday. “I would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably.”
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